In fact, we rank first among developed nations and, remarkably, among all nations, even China is more energy thrifty than the U.S.

Addressing this problem is a dedicated, diverse and bipartisan coalition of energy leaders, aligned through the Alliance to Save Energy, called the Commission on National Energy Efficiency Policy. The commission has spent the past year analyzing opportunities to make our economic sectors more energy productive and recently released a plan, Energy 2030, outlining specific, actionable policy to invest, modernize and educate in order to double U.S. energy productivity by 2030.

Dramatically improving our energy efficiency is the shared goal of President Obama. In the State of the Union speech, when the President set a vision of cutting energy waste in half, he was helping to advance the Energy 2030 plan. The President also highlighted a new energy efficiency “Race to the Top” challenge for states, which is among the Energy 2030 recommendations.

A Closer Look at the Problem and Opportunity

Chronically low energy productivity – the level of output that our economy achieves from the energy we all consume – is costing U.S. businesses and households an estimated $130 billion per year.

But we don’t have to be the world’s top energy productivity slacker. Take a look at Massachusetts. Under the leadership of Gov. Deval Patrick, the state is ranked first by the American Council for an Energy Efficient Economy (ACEEE) and it’s leading to real consumer benefits. In 2012, in one small community program alone, families saved more than $10 million in electric and gas bills by providing personalized information, with neighborhood benchmarks and advice about how they can use less energy.

Only about half of U.S. states have implemented policies like Massachusetts. Within the Energy 2030 Plan a national strategy to enable every state to realize its potential for energy productivity.

Our Commission projects big benefits from a national commitment to energy productivity; it could save $1,000 a year in net household energy costs, net more than a million new jobs, and cut both CO2 emissions and oil and gas imports by a third. This will also reduce the financial pressure on working families, improve our environmental health, make us a more competitive global economy, and accelerate our efforts to become more energy independent.

A great example of improving energy productivity is already taking shape on our roads: the Obama Administration issued rules last year that will more than double the U.S. auto fleet’s average fuel economy – to 54.5 miles per gallon – by 2025. This move, which was applauded by both automakers and environmentalists, will put money back in the pockets of families and businesses, freeing up those dollars to be spent elsewhere in the economy.

If we can get our cars to go twice as far for the same amount of gasoline, why can’t we get our whole economy to grow with a lot less energy?

We can, but going forward, we must change in three very important ways.

One, policy makers should rethink how we regulate our energy market.

The old regulatory paradigm that ties utility profits to generating and selling more energy is actually encouraging waste. While Thomas Edison may not have envisioned a world in which we pay utilities to help customers use less power, it’s common sense. Simply put, reducing demand is cheaper than building new power plants and transmission lines.

Many states already get this. (See Massachusetts’ Green Communities Act of 2008.) Over the last two decades, reform has swept through about half the nation so that utilities have an incentive to help businesses and families use energy more productively.

New policies that encourage utilities to meet energy efficiency goals are working. Between 2002 and 2011, states without efficiency goals exhibited an average increase in per-capita electricity consumption of 9%, while states with efficiency goals had a per-capita increase of only 5%. And these are not just northeastern states. Texas, Arkansas, Ohio, North Carolina, Arizona and now Louisiana all have energy efficiency standards. Texas was the first, in 1999, led by Governor George W. Bush. Ninety percent of the states with efficiency policies are meeting or exceeding their targets.

Second, our proposed federal “Race to the Top” framework is modeled after the innovative education policy that has led to school reforms is several states.

A “Race to the Top” for energy productivity would empower the federal government to challenge states and local governments to boost energy productivity and give them support to do it.

Third, energy efficiency initiatives will benefit from a comprehensive national plan that accounts for federal, state and regional energy requirements, and one that looks ahead to fully understand and plan for the nation’s energy priorities.

That is one of President Obama’s great leadership opportunities in his second term. No president has ever been closer to creating a legacy of a nation thriving on clean energy innovation, efficiency, and independence.

Given that our nation wastes more energy than it uses – yes, 57% of the energy flowing into our economy, whether from oil, coal, natural gas, or renewables, is simply wasted as heat, noise and leaks – the president should challenge all of our states – even leaders like Massachusetts – to tighten down the energy tap while opening our nation’s eyes to our larger energy opportunity.

The benefits will fuel a very different kind of energy and innovation boon.

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